KUALA LUMPUR, June 12 (Bernama) -- Selected blue-chip counters trading at attractive valuations helped Bursa Malaysia close higher on Friday, despite cautious market sentiment driven by developments in West Asia, volatility in crude oil prices and uncertainty over the global interest rate outlook. At 5 pm, the FTSE Bursa Malaysia KLCI (FBM KLCI) rose by 4.10 points or 0.24 per cent to 1,683.63 compared with Thursday's close of 1,679.53. The key index opened 5.34 points stronger at 1,684.87 earlier today and moved between 1,679.72 and 1,685.39 throughout the session. Market breadth was negative, with losers leading gainers 533 to 479, while 561 counters were unchanged, 1,130 untraded and 33 suspended. Turnover fell to 2.79 billion units worth RM2.31 billion from 3.32 billion units worth RM2.88 billion yesterday.
The government will keep the Sales and Services Tax (SST) revenue threshold for construction services at RM1.5 million, rejecting industry appeals to raise it to RM3 million, Deputy Works Minister Datuk Seri Ahmad Maslan told the Dewan Rakyat.
Ahmad said the current threshold is “appropriate”, ensuring that small-scale contractors with project values below RM1.5 million remain unaffected. He added that the government had communicated the July 1 implementation timeline early to allow industry players to prepare.
“There has been no discussion to raise the threshold, and I do not foresee it happening. At this point, the RM1.5 million threshold is sufficient,” Ahmad said.
Under the revised policy, a 6% SST applies to construction service providers whose taxable revenue exceeds RM1.5 million within any 12-month period. Exemptions include residential buildings, public amenities within residential developments, religious facilities, public toilets and recreational parks.
Ahmad responded to concerns from Abdul Latiff Abdul Rahman (PN–Kuala Krai), who cited rising labour and material costs in urging for a higher threshold. He also clarified to Yusuf Abdul Wahab (GPS–Tanjong Manis) that ongoing projects and exempted categories are being handled with targeted reliefs to minimise disruption.
Ahmad stressed the tax measure will not undermine the sector’s viability, adding that the government will continue to support the construction industry through targeted exemptions and proactive adjustments.
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